Question · Q2 2026
Paul Michael Treiber from RBC Capital Markets asked about the back-end loaded outlook for QNX revenue, seeking clarification on whether the anticipated pickup in the second half of the year is driven by one-time licenses/professional services or a ramp in royalties. He also inquired about the current status of large automotive OEM programs, specifically if they are back on track after earlier uncertainties or if delays persist.
Answer
CFO Tim Foote explained that QNX's back-end loaded revenue pattern is typical, with Q1 being the lowest and Q4 the highest, primarily driven by the timing of development seat licenses and design work, alongside growing royalties. He clarified that while automotive programs are starting to come online, they are still "shifted to the right" due to ongoing tariff headwinds and software development complexities, though there is more certainty than previously. CEO John Giamatteo added that increased S&P global light vehicle production and stable OEM guidance suggest a stabilization and an "unpressing of the pause button."